NAICS 325520 Quarterly Industry Report
Adhesive Manufacturing
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 325520Sector: 32Updated: Q1 2026
About This Report
This Fair Market Value industry report for NAICS 325520 delivers business owners, acquirers, and financial advisors data-driven valuation insights for the adhesive manufacturing sector, drawing on data from the U.S. Census Bureau[5] and International Trade Administration[8] adhesive trade statistics. Additional data is drawn from Bureau of Labor Statistics[9].. The report aggregates transaction multiples, financial benchmarks, and market trends specific to NAICS 325520 establishments, supporting buy-sell agreements, succession planning, SBA-financed acquisitions, and litigation support engagements.
Industry Snapshot
Key metrics for the adhesive manufacturing industry.
Industry Definition & Overview
Adhesive Manufacturing (NAICS 325520) encompasses establishments primarily engaged in manufacturing adhesives, glues, caulking compounds, sealants, and related bonding products for construction, packaging, woodworking, automotive, electronics, and general industrial assembly applications. According to the U.S. Census Bureau[5], approximately 297 companies operate within this classification, employing over 23,000 workers with annual revenue exceeding $14.8 billion in manufacturing facilities that formulate and produce liquid adhesives, hot-melt systems, pressure-sensitive adhesives, structural bonding agents, and specialty sealant products. The industry serves diverse end markets with product categories including construction adhesives and sealants for building envelope and flooring applications, packaging adhesives for corrugated case sealing and labeling, woodworking adhesives for furniture and cabinetry, automotive assembly adhesives replacing mechanical fasteners, and electronics adhesives for circuit board and component bonding. Industry Bureau of Labor Statistics[6] identifies production roles including chemical blending operators managing reactor and mixing equipment, formulation chemists developing adhesive chemistries, quality control technicians performing bond strength and viscosity testing, application engineers providing customer technical support, and packaging operators filling cartridges, drums, and bulk containers. Per the SBA Office of Advocacy[7], the industry includes large multinational chemical companies with broad adhesive product portfolios alongside numerous smaller specialty formulators serving specific market segments. The International Trade Administration[8] reports U.S. adhesive exports exceeding $2.5 billion, reflecting strong domestic production capabilities, while imports of $895 million demonstrate the global competitive position of U.S. Additionally, adhesive manufacturers in international markets.
What's Included in This Industry
- Valuation multiples benchmarked to adhesive and sealant manufacturing operations
- Revenue and EBITDA trends for domestic adhesive production facilities
- SBA lending data and financing terms for NAICS 325520 businesses
- Comparable transaction data from recent adhesive company acquisitions
- Industry risk factors including polymer pricing, construction cycles, and technology shifts
- Workforce composition and labor cost benchmarks for adhesive formulation operations
- Regional market analysis covering major adhesive manufacturing and distribution markets
- Capital expenditure benchmarks for reactor, mixing, and packaging equipment
- Growth projections tied to lightweight construction and automotive adhesive bonding trends
- Owner compensation and discretionary earnings benchmarks
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Subsector | Chemical Manufacturing | 325 |
| Industry Group | Paint, Coating, and Adhesive Manufacturing | 3255 |
| NAICS Industry | Adhesive Manufacturing | 32552 |
| National Industry | Adhesive Manufacturing | 325520 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 325211 | Plastics Material and Resin Manufacturing | Plastics resin manufacturers producing acrylic, polyurethane, epoxy, and hot-melt polymer base resins consumed as primary raw materials in adhesive formulation operations |
| 325510 | Paint and Coating Manufacturing | Paint and coating manufacturers sharing polymer resin supply chains and chemical formulation technologies with adhesive producers across related specialty chemical markets |
| 325199 | All Other Basic Organic Chemical Manufacturing | Basic organic chemical manufacturers producing solvents, plasticizers, and tackifier resins consumed as critical formulation ingredients in adhesive manufacturing processes |
| 322219 | Other Paperboard Container Manufacturing | Other paperboard container manufacturers consuming packaging adhesives for corrugated case sealing, lamination, and converting operations at paperboard processing facilities |
| 321219 | Reconstituted Wood Product Manufacturing | Reconstituted wood product manufacturers consuming structural wood adhesives for particleboard, MDF, and oriented strand board production bonding operations |
| 326199 | All Other Plastics Product Manufacturing | Plastics product manufacturers consuming specialty adhesives for assembly bonding, lamination, and component attachment in molded and fabricated plastic product manufacturing |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | California | 11.1% | 58 |
| 2 | Ohio | 8.4% | 44 |
| 3 | Illinois | 6.9% | 36 |
| 4 | Georgia | 6.7% | 35 |
| 5 | Texas | 6.5% | 34 |
| 6 | Michigan | 5.7% | 30 |
| 7 | New Jersey | 5.3% | 28 |
| 8 | Pennsylvania | 4.8% | 25 |
| 9 | North Carolina | 4.0% | 21 |
| 10 | Florida | 3.4% | 18 |
% Of Establishments
0%
11%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
8
Total SBA Loans
$3.4M
Total Loan Volume
$430K
Average Loan Size
25 yrs
Average Loan Term
8.45%
Average Interest Rate
0
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: Adhesive manufacturers evaluating SBA financing benefit from favorable qualification prospects under the SBA size standards[10] for NAICS 325520, which set the threshold at 550 employees for small business classification. The SBA 7(a) loan program[11] supports specialty adhesive producers acquiring businesses or financing working capital for raw material inventory, while the CDC/504 loan program[12] provides long-term fixed-rate financing for reactor systems, mixing equipment, hot-melt application systems, and warehouse expansions. Lenders evaluate customer diversification across construction and industrial segments, raw material supply agreements, and technical certification status when structuring adhesive manufacturing loans.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | U.S. Bank, National Association | 8 | $3.4M | $430K |
Frequently Asked Questions
Common questions about this industry.
What is the typical valuation multiple for an adhesive manufacturer?
Adhesive manufacturers typically trade at 6x to 10x EBITDA, with specialty adhesive producers serving high-value markets commanding premium multiples over commodity adhesive formulators. Per U.S. Census Bureau[5] data, the industry's 297 firms range from large multinational adhesive companies to smaller regional formulators valued on technical capabilities and customer relationships.
What SBA loan options are available for adhesive manufacturing businesses?
The SBA[10] sets the small business threshold at 550 employees for NAICS 325520. Most specialty adhesive producers qualify for SBA financing, with 7(a) loans supporting acquisitions and working capital, and 504 loans financing manufacturing equipment and facility investments.
How do raw material costs affect adhesive manufacturer profitability?
Polymer resins, solvents, and specialty chemicals represent 50% to 65% of manufacturing costs, with petrochemical-linked raw material pricing creating margin volatility. Per the U.S. Energy Information Administration[13], crude oil and natural gas pricing flows through to polymer and solvent costs that directly affect adhesive production economics.
What are the growth drivers for adhesive manufacturing?
Automotive lightweighting using structural adhesives, flexible packaging growth, construction activity, and electronics miniaturization drive demand. Per the International Trade Administration[8], adhesive bonding is replacing mechanical fastening in automotive and aerospace assembly, creating above-average growth for structural adhesive product categories.
What environmental regulations affect adhesive manufacturers?
The EPA[14] regulates adhesive manufacturing under Clean Air Act VOC emission standards, driving reformulation from solvent-based to waterborne, hot-melt, and reactive adhesive chemistries. State-level VOC content regulations further restrict solvent use in adhesive products sold in regulated regions.
How is technology changing the adhesive industry?
Reactive hot-melt systems, UV-curable adhesives, and bio-based formulations represent growing technology segments. According to the EPA[14], sustainability-driven demand for low-VOC and formaldehyde-free adhesives is reshaping product development priorities across construction, packaging, and wood bonding markets.
What workforce challenges do adhesive manufacturers face?
The Bureau of Labor Statistics[6] reports that polymer chemists, formulation scientists, and application engineers are in demand across the adhesive manufacturing sector. Competition from paint, coatings, and specialty chemical employers for trained chemists creates persistent recruitment challenges in adhesive formulation roles.
How does the construction cycle affect adhesive demand?
Construction adhesives and sealants represent a major market segment, with housing starts and commercial building activity directly driving demand volumes. Per the U.S. Census Bureau[5], residential construction spending and commercial building permits serve as leading indicators of construction adhesive and sealant consumption trends.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]U.S. Census Bureau census.gov
- [6]Bureau of Labor Statistics bls.gov
- [7]SBA Office of Advocacy advocacy.sba.gov
- [8]International Trade Administration trade.gov
- [9]Bureau of Labor Statistics bls.gov
- [10]SBA size standards sba.gov
- [11]SBA 7(a) loan program sba.gov
- [12]CDC/504 loan program sba.gov
- [13]U.S. Energy Information Administration eia.gov
- [14]EPA epa.gov
Disclaimer
This publication has been prepared by Fair Market Value (“Fair Market Value”) for informational purposes only. It is provided on an “as-is” and “as available” basis. Fair Market Value makes no representations or warranties, express or implied, regarding the merchantability, fitness for a particular purpose, completeness, or accuracy of the data or information contained herein. This publication is not intended to be, and should not be construed as, professional financial, legal, tax, or investment advice. Users should consult with qualified professionals before making any financial or business decisions based on the information presented.
To the extent permitted by law, Fair Market Value disclaims all liability for loss or damage, direct and indirect, suffered or incurred by any person resulting from the use of, or reliance upon, the data in this publication.
Copyright © 2026 Fair Market Value. All rights reserved. All data, information, articles, graphs, and content contained in this publication are copyrighted works and Fair Market Value hereby reserves all rights. No part of this publication may be copied, reproduced, republished, uploaded to a third party, or distributed without the prior written permission of Fair Market Value.